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The Competitive companies, irrelevant of being public or private, in order to remain competitive and performing well, need and must be interested towards developing and establishing adequate performance measurement and management systems. Given the revolution of economic profit that for several decades have joined the field of corporate finance, there is a need to review existing performance management systems and provide guidance in continuous use of existing systems, or provide another view of successful innovations used by other companies and explore opportunities in adopting for internal company use. This paper examines the existing performance management system in the Post and Telecommunication J.S.C., the biggest corporation in Kosovo. This paper elaborates the use of an innovative measure called EVA. It also discusses the importance of Value Based Management, EVA concept as well as the use of 6M’s. Paper concludes with several ideas on the advantages and disadvantages of EVA implementation and potential adoption as part of PTK’s performance management system, which due to being a publically owned company with a privatization perspective will face it difficult to comply with strict requirements of EVA implementation in regards to its performance management approach.

Advantages and disadvantages of application of EVA (Economic Value Added) in public companies: case of Post and Telecommunication of Kosova (PTK)